1

Funding Raised in the Vacation Rental Industry

2011-2015By Amy Hinote

Editor-In-Chief, VRM IntelJanuary 1, 2016

2

$3.4 billion injected into Vacation Rental Industry 2011-2015.

$3.4 billion in disclosed angel and institutional funding has been raised by startups in the vacation rental industry since 2011, and 96% of that investment is being used to build up online marketplaces including Airbnb whose 2015 funding totaled $1.6 billion and catapulted Airbnb’s valuation to $25.5 billion.

According to Fortune Magazine, over the past year Venture Capitalists have increased their funding of tech startups in virtually every corner of the economy by 92% compared to two years ago. In contrast, the vacation rental industry has seen a 750% increase in funding compared to two years ago.

The market is enticing. In the U.S. alone, the percentage of people over 18 who have stayed in a vacation rental has quadrupled from 8% to 32%, and it is now estimated that there are approximately 1.3 million vacation rental properties in the U.S. and 4.3 million vacation rental properties in Europe. With the size and opportunity of the market along with the fragmentation within the industry, VCs are finding attractive investment opportunities with companies innovating in the vacation rental space.

3

2011 -2015 (IN MILLIONS)

2011–2015 (in millions)Disclosed Funding in the Vacation Rental Industry

2011 -2015 (IN MILLIONS)

2011 2012 2013 2014 2015 $0

$500

$1,000

$1,500

$2,000

2011 2012 2013 2014 2015

$154 $102

$278

$653

$2,194

Amy Hinote – VRM Intel

4

NOTES

EXCLUDING AIRBNB: 2011-2015 (IN MILLIONS)

Annual Funding in Vacation Rental Sector –Excluding Airbnb

EXCLUDING AIRBNB: 2011-2015 (IN MILLIONS)

• Of the total $3.4 billion raised 2011-2015, $2.4 billion was raised by Airbnb.

• When Airbnb’s investment is excluded, the capital injection in 2015 remains over seven times that of two years ago and up 334% year over year.

2011 2012 2013 2014 2015

0

100

200

300

400

500

600

2011 2012 2013 2014 2015

$42.4$95.3 $77.7

$177.9

$594.4

Amy Hinote – VRM Intel

5

NOTES

BY COMPANY TYPE: 2015 (IN MILLIONS)

Funding in the Vacation Rental Industry by Company Type -2011-2015

BY COMPANY TYPE: 2011-2015 (IN MILLIONS)

Investment into online marketplaces or “distribution sites” represented 99% of the funding in 2015 and 96% of the overall funding over the five year period.

Online Marketplaces Services Technology Tools

0

500

1000

1500

2000

OnlineMarketplaces

Services TechnologyTools

$2,171

$14 $10

Amy Hinote – VRM Intel

6

VR Funding by Country 2011-2015

1%

75%

19%

.1%.5%

.1%

USA$2.54 BILLION

CANADA$19 MILLION

EUROPE$15 MILLION

INDIA$4.5 MILLION

CHINA$649 MILLION

SINGAPORE$2 MILLION

4.5%UK

$152 MILLION

Amy Hinote – VRM Intel

7

VR Funding by Country 2011-2015

1%

75%

19%

.1%.5%

.1%

USA$2.54 BILLION

CANADA$19 MILLION

EUROPE$15 MILLION

INDIA$4.5 MILLION

CHINA$649 MILLION

SINGAPORE$2 MILLION

4.5%UK

$152 MILLION

• Internationally, China’s online marketplaces TuJia, Zhubaijia, and Xiaozhu made their presence known this year collectively raising $470M in 2015. • In the UK in 2015, London-based OneFineStay, which focuses on private luxury homes, most recently added $40 million in a Series D round -

bringing their total raise to $80 million - and lists Hyatt as one of its investors. • In Canada, Luxury Retreats recently raised $11 million bringing their total to $15 million, and in Germany HomeToGo closed both Seed and Series A

rounds in 2015 bringing their total funding to $10 million. Amy Hinote – VRM Intel

8

2015 Vacation Rental Industry Funding by Company COMPANY ROUND AMOUNT COUNTRY TYPE MO YEAR INVESTORS DETAILS

Pillow Seed 2,650,000 USA Service Jan 2015Expansion VC, Homebrew Ventures, Peak Ventures, Sherpa

Ventures Details

BookingPal B 5,000,000 USA Technology Tools Feb 2015Thayer Ventures, PAR Capital Ventures, Camp One Ventures,

Plug & Play Ventures, AmadeusDetails

Xotelia Seed1,721,460

France Technology Tools Mar 2015 Newfund Details

Beyond Pricing Seed 1,500,000 USA Technology Tools Mar 2015Resolute VC, Social Leverage, Structure Capital, QueensBridge

Venture Partners, Caffeinated CapitalDetails

SmartHost Undisclosed277,500

USA Technology Tools Mar 2015 Undisclosed Details

Track Software Undisclosed275,000

USA Technology Tools Mar 2015 Undisclosed Details

Luxury Retreats B11,000,000

Canada Service May 2015 iNovia Capital Details

Lodgify Seed750,000

Spain Technology Tools May 2015Chris Hitchen, HOWZAT Partners, Venrex Investment

ManagementDetails

OneFineStay D 40,000,000 UK Online Marketplace Jun 2015Intel Capital, Quadrant Capital, Index Ventures, Canaan

Partners, Onefinestay, Hyatt HotelsDetails

OneFineStay C25,000,000

UK Online Marketplace Jun 2015 Undisclosed Details

AirbnbPrivate Equity 1,500,000,000 USA Online Marketplace Jun 2015

General Atlantic, Hillhouse Capital Group, Tiger Global Management

Details

Amy Hinote – VRM Intel

9

2015 VR Funding by Company (cont.)COMPANY ROUND AMOUNT COUNTRY TYPE MO YEAR INVESTORS DETAILS

Xiaozhu.com C60,000,000

China Online Marketplace Jun 2015 Joy Capital, Morningside Ventures, CITIC Capital, Heyu Capital Details

HomeToGo A7,500,000

Germany Online Marketplace Jul 2015 DN capital, and Acton Capital Partners Details

HomeToGo Seed2,500,000

Germany Online Marketplace Jul 2015 European Media Holding (EMH) Details

Tripping.com B16,000,000

USA Online Marketplace Jul 2015Steadfast Venture Capital, Seven Seas Venture Partners, Azure

Capital Partners, Enspire CapitalDetails

Tujia.com D300,000,000

China Online Marketplace Jul 2015 All-Stars Investment, The Ascott China, Ctrip Details

Zhubaijia.com B31,300,000

China Online Marketplace Aug 2015 Citic Goldstone Investment Fund Details

VacayStay (fka Vacation

Storebuilder)

Equity Offering 4,150,000

USAOnline Marketplace

and Technology ToolsAug 2015 Equity Financing Details

Zhubaijia.com C78,300,000

China Online Marketplace Sep 2015 HNA Tourism Holdings Details

Tansler Seed1,300,000

USA Online Marketplace Nov 2015 Karlani Capital, Ken Hamlet, Tony Isaac and Michael Reinsch Details

Veeve (fka Vive Unique)

A5,200,000

UK Online Marketplace Nov 2015 Smedvig Capital Details

AirbnbPrivate Equity 100,000,000

USA Online Marketplace Nov 2015 FirstMark Capital Details

PriceMethod Undisclosed Undisclosed USA Technology Tools Dec 2015 AXA Strategic Ventures. Details

Amy Hinote – VRM Intel

10

2014 Vacation Rental Industry Funding by Company

COMPANY ROUND AMOUNT COUNTRY TYPE MO YEAR INVESTORS DETAILS

PayByGroup Seed Undisclosed USA Technology Tools Feb 2014Kima Ventures, SparkLabs Global Ventures, 500 Startups, Erik Blachford, Benjamin Ling, Peter Ashley, Great Oaks Venture

CapitalDetails

Oravel (relaunched as

OYO)A Undisclosed India Online Marketplace Mar 2014 Lightspeed Venture Partners Details

Airbnb D475,000,000

USA Online Marketplace Apr 2014Sequoia Capital, Dragoneer Investment Group, T. Rowe Price,

TPG Growth, Sherpa CapitalDetails

Veeve (fka Vive Unique)

Undisclosed5,900,000

UK Online Marketplace May 2014 Smedvig Capital Details

Tripping.com A5,000,000

USA Online Marketplace May 2014 Recruit Holdings, Quest Venture Partners Details

Tujia.com C100,000,000

China Online Marketplace Jun 2014 GGV Capital, Ctrip, HomeAway, CDH Investments Details

Guesty (fka SuperHost)

Seed1,500,000

Israel Service Jun 2014 Magma Venture Partners Details

InvitedHome Undisclosed3,000,000

USA Service Jun 2014 Undisclosed Details

Dwellable Seed2,000,000

USA Online Marketplace Jun 2014 Maveron, Version One Ventures Details

TurnKey A3,000,000

USA Service Jun 2014 Silverton Partners Details

Amy Hinote – VRM Intel

11

2014 VR Funding by Company (cont.)COMPANY ROUND AMOUNT COUNTRY TYPE MO YEAR INVESTORS DETAILS

Xiaozhu.com B15,000,000

China Online Marketplace Jun 2014 Legend Capital, Morningside Capital Details

Vakast Seed 1,300,000 USA Online Marketplace Jul 2014Blackstone Group senior managing director Chinh Chu and Ken

Pansuria a founder of the Fine Hospitality Group, LLC. Nicky Nguyen, founder of NJ Enterprises Inc.

Details

Inspirato C20,000,000

USA Service Sep 2014 IVP, W Capital Partners, Millennium Technology Value Partners Details

Metamarketplace (Previously Demeure)

B 4,000,000 Canada Online Marketplace Oct 2014 Undisclosed Details

LockState Seed2,000,000

USA Technology Tools Oct 2014 Cypress Growth Capital Details

Oravel (relaunched as

OYO)B 4,500,000 India Online Marketplace Oct 2014 Sequoia Capital Details

Rentals United Seed 575,000 Sweeden Technology Tools Nov 2014 Undisclosed Details

VacayStay (fka Vacation

Storebuilder)

Equity Offering

2,325,000 USAOnline Marketplace

and Technology ToolsNov 2014 Equity Financing Details

TurnKey Vacation Rentals

A5,000,000

USA Service Dec 2014 Silverton Partners Details

VacayHero (previously

Zaranga)Seed 2,800,000 USA Online Marketplace Dec 2014 Microventures, Stucture Capital, Tamarisc, et al Details

Amy Hinote – VRM Intel

12

Funding Raised in the Vacation Rental Industry

2011-2015By Amy Hinote

Editor-In-Chief, VRM IntelJanuary 1, 2016